FX.co ★ European Stocks Extend Losses

European stock markets saw continued declines on Tuesday, with the STOXX 50 dropping by 0.4% and the STOXX 600 decreasing by 0.8%, furthering the downturn initiated in their worst trading session since mid-November. Investor confidence continued to be negatively impacted by prevailing anxieties regarding potential new trade tariffs. Tensions with the United States intensified when President Trump announced potential additional tariffs on several European nations, tied to his unusual interest in purchasing Greenland. He further issued threats of imposing a 200% tariff on French wines and champagne, prompted by President Macron's refusal to engage in his peace efforts. In a separate incident, Trump openly disagreed with the United Kingdom's decision to cede sovereignty of the Chagos Islands to Mauritius. Significant declines were observed in major stocks, such as LVMH (-1.1%), SAP (-0.8%), Hermès (-0.8%), AstraZeneca (-1.9%), Roche (-0.8%), and Siemens (-1.7%). In contrast, ASML Holding saw a 0.5% increase following an upgrade of the European semiconductors sector to "overweight" from "equal weight" by Morgan Stanley.